Surprise rise in jobless claims lets bonds recover from Wednesday's drop; dollar falls.

March 10, 2005: 9:39 AM EST

NEW YORK (CNN/Money) - Bond prices regained some ground Thursday following Wednesday's selloff after a report that showed an unexpected rise in jobless claims.

The benchmark 10-year note rose 9/32 of a point to 96-3/32 to yield 4.49 percent, down from 4.53 percent late Wednesday. The 30-year bond gained 20/32 of a point to 108-16/32 to yield 4.80 percent, down from 4.83 percent late Wednesday. Bond prices and yields move in opposite directions.
Yields on the 10-year note reached a seven-month high Wednesday.
The five-year note added 5/32 of a point to yield 4.14 percent, while the two-year note inched up 1/32 of a point to yield 3.66 percent.
The number of Americans filing initial jobless claims rose last week to 327,000, the government said Thursday, well above Wall Street economists' forecasts for 310,000.
Treasury prices skidded Wednesday, with yields on the ten-year note spiking to the highest levels since July, following a "Beige Book" that indicated the U.S. economy continued to expand in January and February.
The dollar fell against its major foreign counterparts.
The euro bought $1.3426 early Thursday, up from $1.3393 late Wednesday. The dollar bought¥103.92, down slightly from ¥103.97 late Wednesday.
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